San Francisco, San Jose Rents Down, Again
For the fourth consecutive month, San Francisco posted rent declines. In May, rents decreased 3.3% compared to May 2016 and average rents are now $3,369, according to RentCafé’s recent Apartment Market Report. Of the top 10 most expensive rental markets, San Francisco posted the biggest year-over-year decrease.
Other Bay Area cities posted declines as well. Sunnyvale rents decreased 2% year-over-year and San Jose rents declined by 0.2%. Santa Clara posted a 0.4% increase and San Mateo’s rents were flat year-over-year. These cities are among the nation's most expensive, and average rent in San Mateo was $3,019, Sunnyvale was $2,650, Santa Clara was $2,650 and San Jose was $2,579.
San Francisco has been getting plenty of supply within the past few years with thousands of units expected to deliver into 2018. North San Jose also was among the neighborhoods to create the most apartments from 2010 to 2016.
Cities along the Bay Area’s periphery were among the cities to post the fastest-growing year-over-year rents for May 2017. Stockton topped the chart with a 10.6% increase in rents. Sacramento rents increased by 8.2%, Santa Rosa's by 7.8%, Modesto's by 7.7% and Fairfield's by 7.4%.